MSCs are a heterogenous population of self renewable, pluripotent cells that can be isolated from bone marrow and other sources. They are capable of restoring the hematopoietic microenvironment after back-transplantation of even a single clone into the body. The aim of this study was to examine the effect of local delivery of MSCs on muscle regeneration in a murine limb ischemia model. To achieve this aim, rat hindlimb ischemia model was established by surgical ligation of the left femoral artery. Animals were grouped; control rats, ischemic group and, ischemic with hMSCs group. In vitro, hMSCs were isolated from human bone marrow and characterized by flow cytometry. hMSCs were labeled by red fluorescent PKH dye. Peak isometric twitch force (Pt), was assessed 4 weeks after surgery. After rats were sacrificed, muscle tissues of the three studied groups were harvested for pathological assessment, tissue tracing of labeled MSCs and for vascular endothelial growth factor gene expression using quantitative real time PCR. Our results showed that hMSCs were positive for mesenchymal stem cell marker. Histopathologically, ischemic muscle transplanted with hMSCs showed definite angiogenesis& neovascularization. Red fluorescent PKH dye for best cell tracing showed that the red fluorescence was found in ischemic muscle injected with hMSCs. Ischemic with injected hMSCs group induced a significant improvement in blood reperfusion, detected by improved muscle performance, high significant level of VEGF gene expression compared to ischemic group.